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Foreclosure in 92706 : Real Estate Advice

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  • Home Buying3
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Activity 2
Mon Mar 19, 2012
Kawain Payne answered:
The main pitfall to buying a foreclosure is the seller (the bank) has never lived in the home so they cannot give you any history on the condition of the home. The homes are truly sold "as is". The bank often times will not make any repairs. In some cases they will not even do termite work.

Another pitfall is if you are buying using a FHA loan, some REO homes will not meet FHA conditions for funding. Because the condition of the property does not meet FHA guidelines.

The former owner in most cases has either been evicted or has already moved out by the time the REO property is put on the market, so you will most likely not have to deal with getting the previous owner out.

Best of luck to you!

Kawain Payne, Realtor
KawaindPayne@gmail.com
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Tue Sep 9, 2008
Vicki Lloyd answered:
It sounds like you were trying to sell a rental property but that sale fell through? If the bank is foreclosing, it sounds like you aren't making your payments? Most mortgages require homeowners to keep hazard insurance policies in effect on their homes as long as they have the mortgage. If you didn't pay for that insurance, the bank probably purchased it and added the premium to your loan balance.

It will definitely damage your credit if it forecloses. Foreclosures used to clear off credit reports in 7 years, but I've heard that it may now show for 10. Either way, it will definitely affect your ability to get new credit, including refinancing.

I doubt that the bank will come after you, but you could check with Legal Aid Society http://www.lasoc.com/ContentDetail.aspx?Id=14&ContentTypeId=1&CategoryId=2

Or the California Consumer Home Mortgage site :
http://www.yourhome.ca.gov/mortgage-help.shtml
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